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“First in South East Asia, "S-One Petrochemical" with "One Anametrics" to open a 3 Billion "Hydro Cracking Refinery"

Energy Press Releases วันพุธที่ ๑๘ มกราคม พ.ศ. ๒๕๕๕ ๐๙:๓๐ น.
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Bangkok--18 Jan--เวิร์บ ทู บี
“First in South East Asia, "S-One Petrochemical" with "One Anametrics"to open a 3 Billion "Hydro Cracking Refinery", the latestenvironmental-friendly innovation from Russia.

"One Anametrics", the company founded from collaboration among experts in the petrochemical, foreign private banking, local banking, and Russian energy innovators, set to offer anew alternative to the energy industry. With more than 3 Billion Baht funding to build “Hydro Cracking Refinery”, the latest innovation from Russia that can increase production efficiency by reducing 5-10% the refining cost per barrel when compared to the existing technology in addition to being environmentally friendly. The company reached the agreement with ITER Holdings Limited, an manufacturer and owner of this innovation. Machineries are to arrive in March 2012 while constructions and installations are expected to take another year. The project site is located in a central coastal province. After the completion, it is expected to help meet the oil demand of neighboring countries as well as domestic wholesale market especially non-branded gas stations which comprise of more than 50% of the gas stations in the Thailand which the companytargets to capture 10%. It is expected to result in the drop of the energy cost in the future by 2-5%.

Mr. Saran Nithijinda, managing director at S-one Petrochemical Co., Ltd. and Chairman at One Anametrics Intertrade Limited, gave an interview regarding the origin, vision and background of the building of a refinery with innovation from Russia.

"We started S-one Intertrade Co., Ltd. 5 years ago, with initial registered capital of 10 Million Baht to the distribute natural gasoline to various factories with supplies from Petronas,” said Saran and continued, “things went well from the beginning and felt the need to expand. We went into transportation efficiency management businessby founding One Logistics Co., Ltd., a transporter under section 12 to the increased volume of deliveries.”

"Two years later, the volume of natural gasoline was not sufficient to distribute to our industrial partners. The company had to look for other businesses to accommodate the investment already made. There were other products that could meet customers' demand with more than sufficient supply on the market. Therefore, the company turned itself into a vendor under Section 10 with S-one petrochemical as its distributor and One Logistics as its transporter. We seeked from Petronas as our main source of supplies as well as from other oil companies. The disadvantage of a vendor under Section 10 is that the oil is allocated from the unsold quantity of each brand. We cannot

accommodate the Term contract because some of the shortage due to turn around of each refinery. Furthermore, being a venter under Secton 10 cannot get into a long term contract with refineries to lock in the volatile prices.

"Last year, the company has decided to seek approval to be a vendor under Section 7, which resolves the uncertainties mentioned earlier as well as ability to import oil and resell it to neighboring countries. Being a vendor under Section 7 forced us to have our own oil depot to store oil reserved required by law. In this view, we see anopportunity in the supply chain because, at the moment, Thailand does not have enough oil depots. This marks the start to control every cost increased in the supply chain. We looked into a medium-sized refinery with innovative technology that helps reduced cost of production. We partner with experts in each of areas such as financing from GeneralEquity and leading local banks, technology from Iter Holding Limited which help found One Anametrics Intertrade. Machineries are being imported, mainly from Russia, together with scientists, researchers and engineers to help installing. We will be using the refining process that yields the most optimum results which are reducingconstruction time, reducing numbers of processes to produce different types of oils. The process leaves us 20% of benzene, 70% of diesel, and 10% of fuel oil of approximately 12,500 barrels per day (158.9 liters = 1 barrel). We can respond to the continuing market demand. Moreover, our customers can be assured of the quality of our productsbecause they pass the standard of the Department of Energy Business,Ministry of Energy.

Dr.Chutamas Vongvorakit, Chairman of One Anametrics Intertrade Co.,Ltd. gave an interview regarding the origin, vision “It was not an easy task as it requires countless negotiations and travel outside Thailand. I saw great potential in this project and how it could help our country directly an in-directly economically and status. I am proud to say that it will be the first time in Thai company to take a leading stand in an industry of intense competition and financially rewarding. It is also the first time, A Thai company to possess a new technology that could change the map of oil and gas industry. What I need was to harness the financial & management strength of Anametrics Intertrade Limited. The Russians were the first who invented cracking technology in oil refinery. The thermal cracking method (Also known as “SHUKHOV CRACKING PROCESS”) was invented by Russian engineer Vladimir Shukhov and patented in 1891 in the Russian empire, Patent No. 12926, November 27,1891. That was more than 120 years ago. I am confident that it will also be the Russians who will be the one who re-invented the process to a better one.

I have on stage with me, DR. Steven Hensen (Anametrics Holdings) and MR. Aleksandr Dedov (ITER Promotion). All 3 of them are instrumental to the success of this project. This journey can never be done alone “SYNERGY” is the key success.

I am extremely excited on the prospect of the project. Apart from being the sole and exclusive distributor of the refinery in South East Asia, We will also initiate part production in Thailand too. I hope we can generate a spin off could offer fellow thai a platform to create employment.

Saran and Dr.Chutamas added the details on technology and machinery used in the new refinery as follows: The reasons we choose this Russian technology is that Russia is the country of knowledge and abundance with natural resources especially crude oil. Russia is one of the top oil exporters with continuous development in technology. Other countries had invited Russian engineers, scientists and researchers to work with them in several occasions. One Anametrics is one of them. After much research and travel, we decided to partner with ITER Holdings Limited, Russia who is responsible for designing, inventing and installing refinery systems for the new plant. This will make us the first environmental friendly refinery in South East Asia.

As for the refinery, One Petrochemical uses “Hydro Cranking” which utilizes Nitrogen in separating oils. It uses only 150 degrees of heat, together with special process in each step not to cause any pollution. Hydro Cranking is different from the conventional method in that the latter uses extremely high temperature to condense rawmaterials into oil which causes energy waste and air pollution. “After the opening of this refinery, we anticipate a lot of change in the energy business. More importantly it will mark the start of refinery business development to search for the best technology forThais that can reduce cost as well as be friendly to the environment, “Saran proudly added.

*** At the moment, Thailand has refineries which all belong to large oil vendors. It will be interesting to see what affect this new entrant can bring to the competition and how much lower the oil price can go down. www.anametrics.net,www.oneanametricsintertrade.com

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